4 Things to Know About Blockchain Technology

Blockchain technology keeps information public on a decentralized database. Here are the four things you need to know before joining blockchain technology.
Blockchain technology is a new trend in the financial world. Many companies are jumping on board because of the myriad of benefits. Blockchain technology keeps information public on a decentralized database. While information is public, it only includes user names and account balances. This prevents personal information from being stolen but still, allows transactions to occur seamlessly. Understanding blockchain technology is challenging but is useful for those considering participation. Here are the top four things you should know before getting involved yourself.

Terminology

You need to know some blockchain terminology before researching in-depth. These are the most common terms.

● Distributed Database:

○ A distributed database is a record of all transactions that is updated as they occur. It cannot be altered, deleted, or copied and is housed over several million locations.

● DLT or Distributed Ledger Technology:

○ This is the technology used by blockchains to keep ledgers in several locations simultaneously.

● Block:

○ A block is what makes up a blockchain. Blocks are the most recent transactions recorded. They upload to the blockchain as soon as they are completed. They are permanent once uploaded.

● Node:

○ A node refers to a single computer on the blockchain. A node is an administrator of the blockchain and joins by choice.

A Distributed Database

Blockchain technology is a distributed database. It is a public record of all cryptocurrency transactions. There are millions of computers on the blockchain. This means that there is no central location for the information. Why does this matter? For starters, hackers can’t track multiple locations at once. No hacking means your information is safe. A blockchain is continuously updated across all nodes. The records are public and easy to verify. They cannot be copied or deleted. So as soon as a transaction has occurred, you’ll know.

Some Advantages

There are too many advantages of blockchain technology to list, but the most common are the speed of processing, the reduced cost of transactions, and the permanent transparency.

● Speed:

○ The speed of a blockchain transaction is much faster than normal. The removal of human interaction makes the processing complete in half the time, without the account holds that are typical of normal financial transactions.

● Cost:

○ Managing electronic ledgers is much cheaper than normal accounting programs. Overhead costs and third-party costs are eliminated with this technology. It is thought that if blockchain tech was utilized by the stock market over $6 billion would be saved annually.

● Transparency:

○ Blockchain technology is completely transparent. You see the user and their account balance, but nothing else. There is no way to skip over these facts and be swindled out of money. You also don’t have sensitive personal information scattered over the internet.

You Don’t Need to Know How it Works to Use it

Do you understand all the eccentricities of cryptocurrency transactions? No? That’s ok. All you need to know is that your information is safe and all transactions are visible to everyone on the blockchain. It’s hard to accept that you don’t need to attend classes to utilize blockchain technology, but it’s true. Professionals can take care of your involvement with the blockchain at reasonable rates. Everything you do is essentially hack-proof, fast, and cost-effective.

The opportunity for decentralization is one that will change financial transactions forever. You need a company that knows how to handle these changes as they come. TwoGap is a company that is at the forefront of the blockchain technology trend and they can help you manage your money and complete transactions in a whole new way. It’s smarter, safer, and easier than ever to complete online transactions. For more information about TwoGap and the benefits they offer, visit their website, blog, forum or join their community of forward thinkers.